Why FMCG company need sales force ?

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Through out the discussion I have mentioned that , FMCG is daily needing product, recession can’t hamper, people will not stopping buying etc.

Then why FMCG company need sales force ? , product can be sold without sales  force.

So in this topic I will try to explain why FMCG company need sales force?  

 1.High competition.                                                                                    

In FMCG sector competition level is very high, because from a very small to very big corporate house can enter in FMCG sector. But all the company want their product to move fast . All the company wants same space in the retail outlet but outlet space is limited. Company hires outlet space , gives trade scheme, builds relationship with the retailer. There are so many brands available in a particular category of product. For example, in  Biscuit category so many brands are there in the market. In this case absence of a particular brand does not effect in consumer’s mind, they will shift to other brand.                                                                                                                                                                                   

2. Last mile distribution.

 By last mile distribution we understand , distribution up to micro village level. In this case if sales force are not there , distribution will be in limited area , For example within cities or urban or semi urban area. So neither company can reach to this micro level village area nor the customer will physically move to nearby city or town for Biscuit or shampoo.  Local sales force can plan properly and last mile distribution becomes possible.                            

3. Trade scheme market and  claim settlement.

FMCG company operates different types of trade scheme in the market. Sales team helps effective communication of these trade scheme in the market. Without sales team there is strong possibility of being miss use of trade scheme by the channel partner.  Also sales team facilitates market claim settlement , like trade scheme and damage settlement . 

                        

4.Merchandising .                                                                                                            

Visibility impulse buying, every outlet have limited space for product visualizing .  Sales team takes initiative for merchandising  of product, so that consumer can see them ant buy. Obviously some brands does not require any visibility , consumer will ask and buy. But some low popular or Slow moving category need visibility for selling.                                                              

5. Link between market and company.        

                                              

Sales team is the link between company and the distributor. They need to execute company’s agenda in the real market through distributor. Also sales team  need to communicate market issues to company in consultation with distributor. Sales team is the primary information collector about competitor’s activity , competitor’s  pricing and product quality .     

                                                                                                      

6.Market expansion & share growth.                                                                       

No company wants only selling , they need growth in sales revenue, market share etc. Sales team  need to find new outlet, new market and new customer. Appointment of new distributor and super stockist  where necessary, is the key role of a sales team.  Also sales team need to place new product to existing and new customer. That means sales team  need to penetrate maximum  quantity into the trade channel.  As a whole company’s growth remains maintained.                                                                                                                 

 7.Damage control.                                                                                                              

In FMCG , unsold goods are called damage. Damage is net loss to the company and hence sales team  need to find mechanism for damage control. Sales team need to focus on FIFO( First in first out) maintain at distributor’s  godown.  Also at the time of supply, sales team need  to ensure that right products are placed in right outlet in right quantity.

8.Coordinator among channel partner.                                      

Sales team need to do coordination with different channel partners and need to maintain a good relationship between  retailer and distributor, wholesaler and distributor, distributor and super stockist  and super stockiest with rural distributor. So that company’s business can run smoothly . For example PSR  connects retailer with distributor, Sales officer connects distributor with super stockiest or CFA and ASM connects CFA with company.                                        

9.Market intelligence .   

 Collecting market information is very crucial for  sales team. Understanding competition, and plan accordingly is the key to success . Sales team should know     about competition, their product, pricing , quantity, trade scheme, discount and also types of service provided by competitor .            

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